Kratos Defense & Security Solutions, Inc.

Canaccord Genuity is pleased to announce that on November 23, 2016, it completed a public offering of common stock for Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS).  The Company issued a total of 11,670,000 shares of its common stock at a price to the public of US$6.00 per share, which includes the exercise in full by the underwriters of their option to purchase an additional 1,750,500 shares of its common stock.  Canaccord Genuity acted as Joint Bookrunning Manager for the offering.  Kratos expects to use the net proceeds from the offering for general corporate purposes, including funding expected growth and strategic investments in the Company's high performance unmanned aerial vehicle business area and other new programs under contract and reducing overall Company indebtedness in order to facilitate Kratos' long-term strategy.

Kratos Defense & Security Solutions is a mid-tier government contractor at the forefront of the Department of Defense's Third Offset Strategy.  Kratos is a leading technology, intellectual property and proprietary product and solution company focused on the United States and its allies' national security.  Kratos is an industry leader in high performance unmanned aerial drone target systems used to test weapon systems and to train the warfighter, and is a provider of high performance unmanned combat aerial systems for force multiplication and amplification.  Kratos is also an industry leader in satellite communications, microwave electronics, cyber security/warfare, missile defense and combat systems.